2024-11-09 10:05:00
It won’t just be Michelin. Guest on France Inter this Saturday, November 9, the Minister of Industry, Marc Ferracci said he expected new “announcements of site closures” “in the coming weeks and months” and which will affect “thousands of jobs” . The minister pointed out a certain number of sectors, which are in a “worrying” situation. He cited the automotive sector, “and in particular the equipment manufacturers”, the metallurgy.
The minister indicated that there are “company files in difficulty”, without specifying which ones. He recommends a European response, particularly to support the automotive sector. Among the measures mentioned, he points out “an ecological bonus on a European scale”, a “common European loan” to finance “support mechanisms” for the sector. “From the first half of 2025, the European Commission has said that it will prioritize a ‘clean industrial act’, that is to say European legislation on clean industry in which we will be able to implement a certain number of of measurements».
The German automobile supplier Schaeffler has already announced the elimination of 4,700 jobs in Europe as well as the closure of two sites, another example of the difficulties of the sector faced with cascading social plans. The automotive industry and equipment manufacturers sector is in the grip of a crisis, triggered by a decline in car sales, particularly in Europe and China, the main market for European manufacturers.
If it has spread to large groups in recent months, this equipment manufacturer crisis had already brought many small factories to their knees. In eastern France, Dumarey Powerglide, which notably manufactures gearboxes, saw its largest customer, ZF, stop its orders. Nearly half of the 591 employees will have to leave the company, which still employed 2,500 employees a few years ago.
Less 7% between 2009 and 2020
A few kilometers away, the equipment manufacturer Walor was bought at the end of 2023 by the German fund Mutares. Its two factories in the Ardennes (212 employees) manufacture connecting rods, large steel parts essential for thermal engines, but useless for electric ones. They were placed in safeguard proceedings for one and in receivership for the other. Near Paris, MA France (280 employees) was placed in compulsory liquidation in spring 2024. MA France stamped essential bodywork parts for small Peugeot or Citroën utility vehicles, in particular.
In France, the number of companies in the automotive sector fell by 7% between 2009 and 2020, according to a note published by the General Directorate of Enterprises (DGE).
On the other hand, this electric shift also requires hiring, among equipment manufacturers who have repositioned themselves on electricity or in battery factories, but the takeoff of these industries is slower than expected.
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**Interview with Marc Ferracci, Minister of Industry**
**Interviewer**: Thank you for joining us today, Minister Ferracci. You mentioned on France Inter about the potential for new site closures in various sectors, including automotive and metallurgy. Can you elaborate on the current situation in these industries?
**Marc Ferracci**: Thank you for having me. Yes, the current situation is concerning. We’ve seen significant challenges in the automotive industry, especially among equipment manufacturers. This sector is experiencing a crisis, largely due to a drop in car sales, particularly in key markets like Europe and China. As a result, we expect announcements regarding site closures that could impact thousands of jobs.
**Interviewer**: What specific measures are you considering to address these challenges?
**Marc Ferracci**: We believe a coordinated European response is essential. I’ve proposed several measures, including initiating a European ecological bonus and establishing a common European loan to support the sector. The European Commission is also prioritizing a “clean industrial act,” which aims to enact relevant legislation that can help implement necessary support mechanisms by mid-2025.
**Interviewer**: The automotive supplier Schaeffler recently announced substantial job cuts across Europe. How do you see this affecting the automotive workforce overall?
**Marc Ferracci**: The implications are significant. The reduction of 4,700 jobs by Schaeffler is a testament to the larger trend we’re seeing. Many small factories have already closed or are struggling, which stresses the entire supply chain. We must ensure that workers have the support they need during this transition, and it highlights the urgent need for action at the European level.
**Interviewer**: Given these developments, what reassurance can you provide to those affected by potential job losses?
**Marc Ferracci**: I understand the uncertainty and fear that families face. Our government is committed to working closely with affected businesses, labor unions, and European partners to create a safety net for displaced workers. We are exploring training programs, job placement services, and other forms of assistance to help those workers transition into new roles, particularly in emerging sectors that align with our green transition goals.
**Interviewer**: Thank you, Minister Ferracci, for your insights on this pressing issue. We appreciate your time.
**Marc Ferracci**: Thank you for having me. It’s crucial that we continue this dialogue as we work toward sustainable solutions.
